Unlike the image private equity has gained in developed markets, private equity in the developing world is not based on highly leveraged transactions. It is largely growth equity, backing small- and medium-sized businesses that are the key to job creation.

As well as bringing capital, the emerging-markets fund managers that IFC works with bring the expertise these fast-growing companies need as they expand. For example, moving from 20 to 100 staff means you will need a proper need Human Resource system, better marketing of your products, and properly audited accounts. Fund managers offer hands-on business advice that help companies go through these structural changes.